Many buyers might wonder if they need a realtor when purchasing a new construction home. Some may believe that representation is an unnecessary cost or that they can handle negotiations and processes themselves. However, having a professional real estate agent on your side can make a significant difference in the outcome of your new build.
The Phil Aitken Home Team has helped many clients navigate the new construction world and find their dream home. With over 13 years of experience, our team is able to work through the ups and downs in new construction.
In this article, you will learn the 9 reasons why realtor representation is very important and how it will impact your home buying experience. New construction and the role of working with a realtor may seem overwhelming but we will walk you through the benefits.
1. Understanding Commission Dynamics: Ensuring You Don’t Pay More
Buyers do not directly pay commissions to real estate agents; builders are responsible for compensating them. Some buyers may think that opting for self-representation will lead to a discounted home price, but builders rarely adjust prices for those without realtors. Builders often appreciate working with realtors, aiming to establish long-term relationships. This initial understanding sets the stage for the importance of having an advocate who focuses solely on representing your best interests throughout the intricate process of purchasing a new construction home.
2. Greater Leverage and Negotiating Power: You Are the Priority
Builders, like any business, value ongoing relationships. They prefer working directly with real estate agents who consistently bring them clients. This preference gives you, as the buyer, more negotiating power. It’s akin to having a skilled fisherman (your realtor) on your side rather than being the fish (you) negotiating directly with the builder. This leverage can lead to better terms, more favorable upgrades, and an overall advantageous deal for you.
3. Valuable Experience: Spotting Red Flags and Saving Dollars
Experienced real estate agents bring invaluable negotiation skills and a deep understanding of builder contracts to the table. They can identify potential issues, navigate complex contract details, and spot red flags that might be overlooked by a buyer without professional representation. From securing pre-approval letters to negotiating high-end upgrades, a knowledgeable realtor can save you both time and money during the new construction process.
4. Protecting You from Builder Mistakes
Issues are almost inevitable in the new construction process, ranging from misplaced kitchen cabinets to incorrect paint colors. When problems arise, real estate agents act as intercessors, leveraging their understanding of builder hierarchies within construction companies. Your realtor is protecting you from being “bullied” into paying more for builder mistakes and accepting your home “as is.”
5. Builder Kick-Backs: Ensuring You Have Options
Builders often have preferred lenders, title companies, and other professionals they work with, offering certain discounts. While this may seem enticing, these in-house professionals may not always provide the most competitive rates. Having an experienced realtor on your side when it is time to go over the final contract and inspection with your builder is ALWAYS to your advantage. That extra set of well-trained eyes will help to ensure no detail is missed, that your new home is zoned correctly, that the HVAC system is geared toward maximum energy efficiency, saving you lots of dollars long-term and that every detail is carried out exactly as you have planned.
6. Attention to Every Detail in Walk Throughs
Walk-throughs are critical in any home-buying process, but they are especially crucial in new construction. Having a realtor present at every stage, from the foundation pouring to the final walk-through, ensures that every detail is scrutinized. Your realtor will know to recommend licensed inspectors who can double-check the build process, ensuring all aspects are handled correctly and up-to-code. City inspectors should not be relied upon as they are known to be more “relaxed” during the inspection process.
7. Maximizing Your Investment
When it comes to financing your new build, an experienced realtor provides invaluable assistance. They can help you compare fee worksheets, obtain settlement statements, and assess cost variations among lenders. This guidance ensures that you make informed decisions, securing the most favorable terms for your mortgage. The options are vast, and a realtor’s expertise helps you navigate through the complexities of financing with confidence.
8. Smooth Closing Process: Ensuring Every Detail is Correct
Realtors excel at managing the closing process, ensuring that every detail is correctly completed and accounted for. They handle paperwork with the title company, guaranteeing a seamless transition from the final walk-through to official ownership. With their expertise, you can be confident that there are no surprises at the closing table, and you receive the keys to your new home without any hitches.
9. Maintaining a Lasting Relationship
The relationship with your realtor doesn’t end at closing. A reputable real estate agent continues to support you after the purchase, reminding you to file for homestead tax credits, assisting with assessment appeals, and guiding you through any possible warranty issues. This ongoing support ensures that you have a knowledgeable ally even after you’ve officially become a homeowner.
Working with a realtor during when purchasing a new construction home is not just a smart choice; it’s a strategic investment in a smooth and successful home-buying experience.
While some may view the process as risky or anticipate higher costs, the expertise and guidance provided by a real estate professional far outweigh any perceived drawbacks. Trust in the expertise of your realtor, and they will ensure that every step of the process aligns with your vision and financial goals. Your dream home awaits, and with the right representation, you can turn that dream into a reality without unnecessary stress or unexpected challenges.
If you don’t have a realtor in mind, or know you’d like to work with our team at Your Home Sold Guaranteed Realty - Phil Aitken Home Team, reach out to schedule an appointment with us today.